Daily Real Estate Briefing: High Apartment Prices, Rising Credit and Notable Market Developments

Vietnam’s real estate market continues to record a number of notable developments. In Hanoi, the Yen Ky Cemetery Park project, which has been delayed for seven years due to site clearance difficulties, is accelerating its resettlement work; 111 eligible households have been allocated more than 20,200 square meters of land. The city has also placed 58 facilities on a relocation list because they are no longer compatible with planning, including Viet Ha Beer Factory and Rang Dong’s light bulb and thermos facility, along with several large-scale land sites. Regarding construction safety, Hanoi has ordered an inspection of subsidence and cracks at Hanoi Homeland apartment complex, an assessment of structural risks, and a suspension of nearby construction if serious safety risks are identified.

In terms of prices and capital flows, average apartment prices were recorded at 123 million VND per square meter in Hanoi and 108 million VND per square meter in Ho Chi Minh City, indicating that housing prices in the two major urban areas remain high. Outstanding credit for real estate businesses rose by more than VND 284 trillion in the second quarter, exceeding VND 2.5 quadrillion; credit for purchasing land-use rights alone increased by more than 23%. The market is expected to improve toward the end of the year as supply increases and interest rates may cool, although purchasing power and home prices remain uncertain. Lower interest rates can ease borrowing pressure, but long-term debt repayment capacity remains decisive, particularly for families weighing homeownership against continued renting. In the investment segment, riverside rental apartments in Da Nang, notably Symphony 5, are attracting attention due to demand from the city’s international professional community. Vinhomes Hai Van Bay is also preparing to launch Vinh May, a sea-facing hillside residential area that takes advantage of the natural terrain of the Hai Van range.

Internationally, global capital is returning to China’s real estate market to test new valuation levels and seek profits. Japan has also drawn attention after Brookfield made a real estate purchase in a country whose population has declined for 17 consecutive years. In the United States, limited housing supply and high salaries in the artificial intelligence industry have pushed rents in San Francisco to the highest level in the country. Other trends attracting interest include factory-produced housing in the US, the boutique model focused on privacy and depth of experience, and a range of amenities increasingly sought by homebuyers. At the household level, small details in the bedroom can affect a room’s sense of warmth, while white vinegar is introduced as a way to clean toilets and remove bathroom odors.